Commitments and Contingencies

Legal Proceedings

We are involved in various claims and litigation arising principally in the ordinary course of business. We believe that adequate provision for resolution of all current claims and pending litigation has been made for probable losses. We believe that the disposition of these matters will not have a material adverse effect on our results of operations and liquidity or on our financial condition.

In April 2017, the SEC informed the Company that it was conducting an investigation and requested that we voluntarily produce documents and information relating to our estimated repair costs for stucco and other water intrusion claims in fiscal 2016. The Company has produced detailed information and documents in response to this request. Management cannot at this time predict the eventual scope or outcome of this matter. See Note 6, “Accrued Expenses” for additional information regarding these warranty charges.

Land Purchase Commitments

Generally, our purchase agreements to acquire land parcels do not require us to purchase those land parcels, although we, in some cases, forfeit any deposit balance outstanding if and when we terminate a purchase agreement. Information regarding our land purchase commitments, as of the dates indicated, is provided in the table below (amounts in thousands):



	January 31, 2018		October 31, 2017
Aggregate purchase commitments:
Unrelated parties	$	2,297,386	$	1,986,276
Unconsolidated entities that the Company has investments in	245,692		248,801
Total	$	2,543,078	$	2,235,077

Deposits against aggregate purchase commitments	$	123,026	$	97,706
Credits to be received from unconsolidated entities	129,869		134,630
Additional cash required to acquire land	2,290,183		2,002,741
Total	$	2,543,078	$	2,235,077
Amount of additional cash required to acquire land included in accrued expenses	$	3,162	$	4,329

In addition, we expect to purchase approximately 2,400 additional home sites over a number of years from several joint ventures in which we have interests; the purchase prices of these home sites will be determined at a future date.

At January 31, 2018, we also had purchase commitments to acquire land for apartment developments of approximately $207.3 million, of which we had outstanding deposits in the amount of $10.7 million.

We have additional land parcels under option that have been excluded from the aggregate purchase commitments since we do not believe that we will complete the purchase of these land parcels and no additional funds will be required from us to terminate these contracts.

Investments in Unconsolidated Entities

At January 31, 2018, we had investments in a number of unconsolidated entities, were committed to invest or advance additional funds, and had guaranteed a portion of the indebtedness and/or loan commitments of these entities. See Note 3, “Investments in Unconsolidated Entities,” for more information regarding our commitments to these entities.

Surety Bonds and Letters of Credit

At January 31, 2018, we had outstanding surety bonds amounting to $690.1 million, primarily related to our obligations to governmental entities to construct improvements in our communities. We estimate that approximately $340.0 million of work remains on these improvements. We have an additional $168.1 million of surety bonds outstanding that guarantee other obligations. We do not believe that it is probable that any outstanding bonds will be drawn upon.

At January 31, 2018, we had outstanding letters of credit of $143.5 million under our Credit Facility. These letters of credit were issued to secure our various financial obligations, including insurance policy deductibles and other claims, land deposits, and security to complete improvements in communities in which we are operating. We do not believe that it is probable that any outstanding letters of credit will be drawn upon.

Backlog

At January 31, 2018, we had agreements of sale outstanding to deliver 6,250 homes with an aggregate sales value of $5.58 billion.

Mortgage Commitments

Information regarding our mortgage commitments, as of the dates indicated, is provided in the table below (amounts in thousands):



	January 31, 2018		October 31, 2017
Aggregate mortgage loan commitments:
IRLCs	$	459,971	$	350,740
Non-IRLCs	1,308,126		1,146,872
Total	$	1,768,097	$	1,497,612
Investor commitments to purchase:
IRLCs	$	459,971	$	350,740
Mortgage loans receivable	64,572		125,710
Total	$	524,543	$	476,450